Release: Herald Resources: Response to bidder?s statement of Tango Mining Pte Ltd
Monday, March 10 2008 - 12:41 AM WIB
The Directors of Herald Resources Limited (?Herald?) confirm they unanimously recommend, in the absence of a superior proposal, that shareholders accept the $2.50 per share all cash conditional takeover offer from Tango Mining Pte Ltd (?Tango?) (the joint venture bid vehicle of PT Antam Tbk (?Antam?) and Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd (?Zhongjin?)) (?Tango Offer?).
The Directors again strongly advise Herald shareholders to withhold their acceptance until near the end of the Tango Offer period, the closing date of which Tango will advise in due course. Shareholders should note that once they accept the Tango Offer, they may forgo the opportunity to accept a subsequent superior proposal, should one eventuate.
Shareholders should note they will not be paid any sooner by early acceptance of the Tango Offer. Shareholders who accept the Tango Offer will only be entitled to receive the cash for their shares after the Tango Offer becomes unconditional.
The Tango Offer is subject to a number of conditions, including:
? 50.1% minimum acceptance
? Foreign Investment Review Board approval
? Antam shareholder approval - the Antam shareholder meeting is scheduled for 18 April 2008
? Zhongjin shareholder approval - the Zhongjin shareholder meeting is expected to be held in late March 2008
Each of the Herald Directors intends to accept the Tango Offer, in the absence of a superior proposal, but intends to wait until near the end of the Tango Offer period to do so.
The Directors note that since the date the Tango Offer was announced, Herald shares have traded on the ASX above the Tango Offer price. There is no certainty that Herald shares will continue to trade at current levels. Herald shareholders who wish to realise all or part of their investment in Herald in the short term may consider selling some or all their shares on market.
Shareholders should also be aware that by selling some or all of their Herald shares on the market they will not be able to accept either the Tango Offer or any subsequent higher offer for the shares sold, should one eventuate.
Your Directors will, in conjunction with Herald?s advisers, Euroz Securities Limited, continue to assess opportunities to obtain a higher offer for your shares and deal with any such opportunities in a manner consistent with their statutory and fiduciary duties. Shareholders will be kept fully informed of developments.
CALIPSO OFFER ($2.25 PER HERALD SHARE)
Any shareholder who has previously accepted the $2.25 offer made by Calipso Investment Pte Ltd for their Herald shares (?Calipso Offer?) can now withdraw that acceptance.
The Directors of Herald remind shareholders they have withdrawn their earlier recommendation to accept the lower offer from Calipso. (end of edited release)